Inflation Report: February 2026 Overview
A report on inflation for the 12 months ending February 2026 details varied price changes across different sectors. The Trimmed mean inflation remained stable, while housing and electricity costs increased, and transport prices declined.
Key Inflation Indicators
Trimmed mean inflation was 3.3 percent in the 12 months to February 2026, consistent with the 12 months to January 2026. This measure is utilized to provide insights into underlying inflation trends when specific item prices, such as automotive fuel, undergo significant changes.
Sectoral Price Changes
Housing
Annual Housing inflation reached 7.2 percent to February, an increase from 6.8 percent to January. This rise is attributed to increased costs for Electricity, New Dwellings, and Rents.
Electricity
Electricity costs saw a 37.0 percent increase in the 12 months to February, up from 32.2 percent to January. This increase is largely associated with the expiration of the extended Commonwealth Energy Bill Relief Fund (EBRF) and various State Government rebates. The higher year-on-year increase in February compared to January is connected to the cessation of EBRF rebates.
Excluding the impact of both Commonwealth and State Government electricity rebates over the preceding year, electricity prices increased by 4.9 percent in the 12 months to February, reflecting annual price reviews conducted by energy retailers in July 2025.
Food and Non-Alcoholic Beverages
Prices in this category rose by 3.1 percent in the 12 months to February. Annual food inflation remained above three percent. Meals out and takeaway prices increased by 3.7 percent over the past year. Beef and lamb prices were 13 percent higher compared to 12 months prior.
Transport
Transport costs decreased by 0.2 percent in the 12 months to February. Automotive fuel prices were 7.2 percent lower compared to 12 months ago. Automotive fuel prices decreased by 3.4 percent in February and 3.2 percent in January, preceding the Middle East conflict.